Public Act 099-0464
 
HB3220 EnrolledLRB099 10384 JLS 30611 b

    AN ACT concerning employment.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Secure Choice Savings Program Act
is amended by changing Sections 5, 16, 80, 85, and 90 as
follows:
 
    (820 ILCS 80/5)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 5. Definitions. Unless the context requires a
different meaning or as expressly provided in this Section, all
terms shall have the same meaning as when used in a comparable
context in the Internal Revenue Code. As used in this Act:
    "Board" means the Illinois Secure Choice Savings Board
established under this Act.
    "Department" means the Department of Revenue.
    "Director" means the Director of Revenue.
    "Employee" means any individual who is 18 years of age or
older, who is employed by an employer, and who has wages that
are allocable to Illinois during a calendar year under the
provisions of Section 304(a)(2)(B) of the Illinois Income Tax
Act.
    "Employer" means a person or entity engaged in a business,
industry, profession, trade, or other enterprise in Illinois,
whether for profit or not for profit, that (i) has at no time
during the previous calendar year employed fewer than 25
employees in the State, (ii) has been in business at least 2
years, and (iii) has not offered a qualified retirement plan,
including, but not limited to, a plan qualified under Section
401(a), Section 401(k), Section 403(a), Section 403(b),
Section 408(k), Section 408(p), or Section 457(b) of the
Internal Revenue Code of 1986 in the preceding 2 years.
    "Enrollee" means any employee who is enrolled in the
Program.
    "Fund" means the Illinois Secure Choice Savings Program
Fund.
    "Internal Revenue Code" means Internal Revenue Code of
1986, or any successor law, in effect for the calendar year.
    "IRA" means a Roth IRA (individual retirement account)
under Section 408A of the Internal Revenue Code.
    "Participating employer" means an employer or small
employer that provides a payroll deposit retirement savings
arrangement as provided for by this Act for its employees who
are enrollees in the Program.
    "Payroll deposit retirement savings arrangement" means an
arrangement by which a participating employer allows enrollees
to remit payroll deduction contributions to the Program.
    "Program" means the Illinois Secure Choice Savings
Program.
    "Small employer" means a person or entity engaged in a
business, industry, profession, trade, or other enterprise in
Illinois, whether for profit or not for profit, that (i)
employed less than 25 employees at any one time in the State
throughout the previous calendar year, or (ii) has been in
business less than 2 years, or both items (i) and (ii), but
that notifies the Board Department that it is interested in
being a participating employer.
    "Wages" means any compensation within the meaning of
Section 219(f)(1) of the Internal Revenue Code that is received
by an enrollee from a participating employer during the
calendar year.
(Source: P.A. 98-1150, eff. 6-1-15.)
 
    (820 ILCS 80/16)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 16. Illinois Secure Choice Administrative Fund. The
Illinois Secure Choice Administrative Fund ("Administrative
Fund") is created as a nonappropriated separate and apart trust
fund in the State Treasury. The Board shall use moneys in the
Administrative Fund to pay for administrative expenses it
incurs in the performance of its duties under this Act. The
Board shall use moneys in the Administrative Fund to cover
start-up administrative expenses it incurs in the performance
of its duties under this Act. The Administrative Fund may
receive any grants or other moneys designated for
administrative purposes from the State, or any unit of federal
or local government, or any other person, firm, partnership, or
corporation. Any interest earnings that are attributable to
moneys in the Administrative Fund must be deposited into the
Administrative Fund. The State Treasurer shall be the
administering agency for the Administrative Fund on behalf of
the Board.
(Source: P.A. 98-1150, eff. 6-1-15.)
 
    (820 ILCS 80/80)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 80. Audit and reports.
    (a) The Board shall annually submit: (1) an audited
financial report, prepared in accordance with generally
accepted accounting principles, on the operations of the
Program during each calendar year by July 1 of the following
year to the Governor, the Comptroller, the State Treasurer, and
the General Assembly. ; and
        (2) a report prepared by the Board, which shall
    include, but is not limited to, a summary of the benefits
    provided by the Program, including the number of enrollees
    in the Program, the percentage and amounts of investment
    options and rates of return, and such other information
    that is relevant to make a full, fair, and effective
    disclosure of the operations of the Program and the Fund.
The annual audit shall be made by an independent certified
public accountant and shall include, but is not limited to,
direct and indirect costs attributable to the use of outside
consultants, independent contractors, and any other persons
who are not State employees for the administration of the
Program.
    (b) In addition to any other statements or reports required
by law, the Board shall provide periodic reports at least
annually to participating employers, reporting the names of
each enrollee employed by the participating employer and the
amounts of contributions made by the participating employer on
behalf of each employee during the reporting period, as well as
to enrollees, reporting contributions and investment income
allocated to, withdrawals from, and balances in their Program
accounts for the reporting period. Such reports may include any
other information regarding the Program as the Board may
determine.
    (c) The State Treasurer shall prepare a report in
consultation with the Board that includes a summary of the
benefits provided by the Program, including the number of
enrollees in the Program, the percentage and amounts of
investment options and rates of return, and such other
information that is relevant to make a full, fair, and
effective disclosure of the operations of the Program and the
Fund.
(Source: P.A. 98-1150, eff. 6-1-15.)
 
    (820 ILCS 80/85)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 85. Penalties.
    (a) An employer who fails without reasonable cause to
enroll an employee in the Program within the time prescribed
under Section 60 of this Act shall be subject to a penalty
equal to:
        (1) $250 for each employee for each calendar year or
    portion of a calendar year during which the employee
    neither was enrolled in the Program nor had elected out of
    participation in the Program; or
        (2) for each calendar year beginning after the date a
    penalty has been assessed with respect to an employee, $500
    for any portion of that calendar year during which such
    employee continues to be unenrolled without electing out of
    participation in the Program.
    (b) After determining that an employer is subject to
penalty under this Section for a calendar year, the Department
shall issue a notice of proposed assessment to such employer,
stating the number of employees for which the penalty is
proposed under item (1) of subsection (a) of this Section and
the number of employees for which the penalty is proposed under
item (2) of subsection (a) of this Section for such calendar
year, and the total amount of penalties proposed.
    Upon the expiration of 90 days after the date on which a
notice of proposed assessment was issued, the penalties
specified therein shall be deemed assessed, unless the employer
had filed a protest with the Department under subsection (c) of
this Section.
    If, within 90 days after the date on which it was issued, a
protest of a notice of proposed assessment is filed under
subsection (c) of this Section, the penalties specified therein
shall be deemed assessed upon the date when the decision of the
Department with respect to the protest becomes final.
    (c) A written protest against the proposed assessment shall
be filed with the Department in such form as the Department may
by rule prescribe, setting forth the grounds on which such
protest is based. If such a protest is filed within 90 days
after the date the notice of proposed assessment is issued, the
Department shall reconsider the proposed assessment and shall
grant the employer a hearing. As soon as practicable after such
reconsideration and hearing, the Department shall issue a
notice of decision to the employer, setting forth the
Department's findings of fact and the basis of decision. The
decision of the Department shall become final:
        (1) if no action for review of the decision is
    commenced under the Administrative Review Law, on the date
    on which the time for commencement of such review has
    expired; or
        (2) if a timely action for review of the decision is
    commenced under the Administrative Review Law, on the date
    all proceedings in court for the review of such assessment
    have terminated or the time for the taking thereof has
    expired without such proceedings being instituted.
    (d) As soon as practicable after the penalties specified in
a notice of proposed assessment are deemed assessed, the
Department shall give notice to the employer liable for any
unpaid portion of such assessment, stating the amount due and
demanding payment. If an employer neglects or refuses to pay
the entire liability shown on the notice and demand within 10
days after the notice and demand is issued, the unpaid amount
of the liability shall be a lien in favor of the State of
Illinois upon all property and rights to property, whether real
or personal, belonging to the employer, and the provisions in
the Illinois Income Tax Act regarding liens, levies and
collection actions with regard to assessed and unpaid
liabilities under that Act, including the periods for taking
any action, shall apply.
    (e) An employer who has overpaid a penalty assessed under
this Section may file a claim for refund with the Department. A
claim shall be in writing in such form as the Department may by
rule prescribe and shall state the specific grounds upon which
it is founded. As soon as practicable after a claim for refund
is filed, the Department shall examine it and either issue a
refund or issue a notice of denial. If such a protest is filed,
the Department shall reconsider the denial and grant the
employer a hearing. As soon as practicable after such
reconsideration and hearing, the Department shall issue a
notice of decision to the employer. The notice shall set forth
briefly the Department's findings of fact and the basis of
decision in each case decided in whole or in part adversely to
the employer. A denial of a claim for refund becomes final 90
days after the date of issuance of the notice of the denial
except for such amounts denied as to which the employer has
filed a protest with the Department. If a protest has been
timely filed, the decision of the Department shall become
final:
        (1) if no action for review of the decision is
    commenced under the Administrative Review Law, on the date
    on which the time for commencement of such review has
    expired; or
        (2) if a timely action for review of the decision is
    commenced under the Administrative Review Law, on the date
    all proceedings in court for the review of such assessment
    have terminated or the time for the taking thereof has
    expired without such proceedings being instituted.
    (f) No notice of proposed assessment may be issued with
respect to a calendar year after June 30 of the fourth
subsequent calendar year. No claim for refund may be filed more
than 1 year after the date of payment of the amount to be
refunded.
    (g) The provisions of the Administrative Review Law and the
rules adopted pursuant to it shall apply to and govern all
proceedings for the judicial review of final decisions of the
Department in response to a protest filed by the employer under
subsections (c) and (e) of this Section. Final decisions of the
Department shall constitute "administrative decisions" as
defined in Section 3-101 of the Code of Civil Procedure. The
Department may adopt any rules necessary to carry out its
duties pursuant to this Section.
    (h) Whenever notice is required by this Section, it may be
given or issued by mailing it by first-class mail addressed to
the person concerned at his or her last known address.
    (i) All books and records and other papers and documents
relevant to the determination of any penalty due under this
Section shall, at all times during business hours of the day,
be subject to inspection by the Department or its duly
authorized agents and employees.
    (j) The Department may require employers to report
information relevant to their compliance with this Act on
returns otherwise due from the employers under Section 704A of
the Illinois Income Tax Act and failure to provide the
requested information on a return shall cause such return to be
treated as unprocessable.
    (k) For purposes of any provision of State law allowing the
Department or any other agency of this State to offset an
amount owed to a taxpayer against a tax liability of that
taxpayer or allowing the Department to offset an overpayment of
tax against any liability owed to the State, a penalty assessed
under this Section shall be deemed to be a tax liability of the
employer and any refund due to an employer shall be deemed to
be an overpayment of tax of the employer.
    (l) Except as provided in this subsection, all information
received by the Department from returns filed by an employer or
from any investigation conducted under the provisions of this
Act shall be confidential, except for official purposes within
the Department or pursuant to official procedures for
collection of penalties assessed under this Act. Nothing
contained in this subsection shall prevent the Director from
publishing or making available to the public reasonable
statistics concerning the operation of this Act wherein the
contents of returns are grouped into aggregates in such a way
that the specific information of any employer shall not be
disclosed. Nothing contained in this subsection shall prevent
the Director from divulging information to an authorized
representative of the employer or to any person pursuant to a
request or authorization made by the employer or by an
authorized representative of the employer.
    (m) Civil penalties collected under this Act and fees
collected pursuant to subsection (n) of this Section shall be
deposited into the Tax Compliance and Administration Fund. The
Department may, subject to appropriation, use moneys in the
fund to cover expenses it incurs in the performance of its
duties under this Act. Interest attributable to moneys in the
Tax Compliance and Administration Fund shall be credited to the
Tax Compliance and Administration Fund.
    (n) The Department may charge the Board a reasonable fee
for its costs in performing its duties under this Section to
the extent that such costs have not been recovered from
penalties imposed under this Section.
    (o) This Section shall become operative 9 months after the
Board notifies the Director that the Program has been
implemented. Upon receipt of such notification from the Board,
the Department shall immediately post on its Internet website a
notice stating that this Section is operative and the date that
it is first operative. This notice shall include a statement
that rather than enrolling employees in the Program under this
Act, employers may sponsor an alternative arrangement,
including, but not limited to, a defined benefit plan, 401(k)
plan, a Simplified Employee Pension (SEP) plan, a Savings
Incentive Match Plan for Employees (SIMPLE) plan, or an
automatic payroll deduction IRA offered through a private
provider. The Board shall provide a link to the vendor Internet
website described in subsection (i) of Section 60 of this Act.
(Source: P.A. 98-1150, eff. 6-1-15.)
 
    (820 ILCS 80/90)
    (This Section may contain text from a Public Act with a
delayed effective date)
    Sec. 90. Rules. The Board and the State Treasurer
Department shall adopt, in accordance with the Illinois
Administrative Procedure Act, any rules that may be necessary
to implement this Act.
(Source: P.A. 98-1150, eff. 6-1-15.)
 
    Section 99. Effective date. This Act takes effect on June
1, 2015.